Contract packaging is a business practice that many companies utilize. Contract packagers use various machinery, whether thermoformed plastic clamshell, blister packaging or an automated form-fill-seal machine for liquids, solids, or powders.
This makes them an attractive resource for businesses that want to expand their product line without investing in packaging equipment. Here are some of the main benefits of working with a contract packager:
Cost
Contract packaging companies can offer a wide range of packaging styles. They have enough room in their facilities to accommodate a variety of equipment, from thermoforming machines essential for clamshell and blister packaging to black shrink wrap and stretch carding. They can also pack large quantities. This can benefit companies with trouble with production levels or growth challenges that limit the product they can produce.
Contract packagers charge per unit for their services. The price depends on the material and volume of products they pack and fixed costs versus variable costs—economies of scale lower unit prices with larger orders.
In-house packaging can be expensive and time-consuming. It requires warehousing, equipment, and staff to manage, which can divert attention from a company’s core business. Outsourcing this work to a co-packer can save money and help a company focus on its core business.
Time
A contract packaging company will have the proper equipment and facilities to handle the amount of packaging your business needs. They can also offer flexible terms on how much packaging they do for your business, saving you money in the long run. They can even provide a wide range of product packaging options, allowing you to test new options and increase sales.
A good contract packager will take time to understand your brand’s aesthetic. They will ensure that the package looks appealing and is easy to read for consumers. They will also make sure that the product is safe for shipping.
A contract packaging company can also help you with other aspects of production, such as warehouse storage and distribution. They can even provide RFID tags to track your packaged products. This will help you to monitor your inventory and deliver a more efficient supply chain.
Regulatory Compliance
Contract packaging companies are often experts in packaging regulations. They know how to ensure your products comply with FDA or agriculture standards. This helps you avoid expensive fines or lawsuits.
They can also help you stay compliant with shipping regulations. For example, they can help you meet new tracking requirements for e-commerce orders and retail deliveries. They can add RFID tags to your packaging so you can trace the package from its origin in their warehouse to its destination at the store or retailer.
A contract packager can also take the burden off your company if you need to repackage a bad batch of products or have too much product in storage. They can handle the process and provide the right materials to fit your product in attractive, space-efficient packaging that is easy to open. They can also work with your marketing and design team to create the aesthetic that best represents your brand.
Quality
Contract packaging companies are highly skilled at optimizing equipment, materials, and labor. They use their skills and experience to ensure your product is packaged well and that the final products will be aesthetically appealing to customers.
A quality contract packager will also help you determine what product packaging will be the best for your market. They will consider the size and weight of your product, the cost of the packaging material, and the volume of your order.
Contract packaging can be a great solution for small businesses that need more continuous production to justify the expense of purchasing or leasing their packaging equipment. They may also have specific regulatory requirements that require the use of specialized machinery and knowledge that they don’t have. It can also be a useful solution for one-time product runs or annual product deliveries that must be repackaged with no available equipment. A contract packaging company can provide the necessary expertise and special services to get your product to market quickly.